Md Monirul Islam
Financial ratio analysis is the most widely used tool for evaluating a bank’s financial health and performance. Regulators, investors, and bank management use these ratios to assess profitability, asset quality, liquidity, capital strength, and operating efficiency. Have a look at…
Md Monirul Islam
Selecting the right borrower is the foundation of sound credit management. The Internal Credit Risk Rating System (ICRRS) plays a vital role in this process. It helps banks assess borrowers objectively and make prudent lending decisions. The importance of ICRRS…
Md Monirul Islam
In general, banks must follow the Internal Credit Risk Rating System (ICRRS) strictly. However, Bangladesh Bank has allowed some exceptions. These exceptions address practical situations where the standard rating process cannot be applied. Newly Established Companies A newly established company…
Md Monirul Islam
Bangladesh Bank introduced the Internal Credit Risk Rating System (ICRRS) to measure borrowers’ creditworthiness objectively and consistently. The system helps banks to assess credit risk before approving or renewing credit facilities. Different sectors have different characteristics. They differ in terms…
Md Monirul Islam
Financial statement analysis uses different analytical tools to evaluate a company’s financial performance and position. The three most commonly used tools are discussed below: Horizontal Analysis (Trend Analysis) Horizontal analysis evaluates financial data over a period of time. It measures…
Md Monirul Islam
Purposes of Credit Investigation Credit investigation serves several important purposes. It helps the bank make safe and informed lending decisions. The main purposes are as follows: Confirming the Borrower’s Character Credit investigation verifies the borrower’s integrity, reputation, and willingness to…